Living & Giving

Having a solid estate plan isn’t limited to outlining the distribution of your assets and the care of your loved ones when your life is over. Your legacy begins now. Planning to give while you are still alive allows you to enjoy the help that you can provide while reducing the taxable estate that you leave behind. Working with an experienced estate planning attorney will help you gift while avoiding the gift tax…

The primary ways of giving without taxation are to either give an unlimited amount in educational or medical expenses for the beneficiary, providing you give the money directly to the institution, or as an annual gift that doesn’t exceed $13,000. Any amount over $13,000 requires a gift tax return. That excess will be applied toward your lifetime gift exclusion of $1 million, with a tax on anything that exceeds that amount.

Another method of gifting is by investing in a 529 college savings plan for a beneficiary. There are limits however to the amount that can be contributed, and some of those contributions can be taxed if you should die before the designated amount totals the maximum annual allowable gifts. Also, no other contributions can be given tax-free to the beneficiary during this time.

Charitable trusts, charitable gift funds, and charitable lead trusts are other ways to give while alive, reducing your taxable estate before death. At Marc Bronstein, A Professional Corporation, we will help you to outline your options and find a solution that’s right for you and your assets. Call and start working today to ensure the gift of tomorrow.

Recent Posts